September 10, 2004

...AND LOWER...:

Producer Prices Drop, Trade Gap Narrows (Tim Ahmann, 9/10/04, Reuters)

U.S. producer prices dropped unexpectedly last month as the cost of gasoline plunged and prices of food and vehicles fell, according to a government report on Friday that showed inflation pressures under wraps.

A separate report showed the nation's trade deficit narrowed more than expected in July as imports declined for the first time in 10 months and exports leapt higher. Still, at $50.1 billion, it was the second biggest gap on record.

U.S. bond prices rose and the dollar slipped as the price report buttressed expectations that the Federal Reserve will take a break at some point this year from the rate-rise cycle it initiated in June. [...]

Economists also said a slimmer trade gap could boost economic growth in the third quarter.

The producer price index, a gauge of prices received by farms, factories and refineries, fell 0.1 percent in August, the Labor Department said. The core index, which excludes volatile food and energy prices, also dropped 0.1 percent -- the first decline since February.

Economists had expected both figures to be up 0.1 percent.

Anyone want to buy a bunker full of gold?

Posted by Orrin Judd at September 10, 2004 1:27 PM

Won't The Wife notice it missing?

Posted by: Annoying Old Guy at September 10, 2004 2:32 PM

It's hidden behind the stacks of books.

Posted by: oj at September 10, 2004 2:43 PM

The people who peddle gold are no better than the pitchmen for diet pills on TV infomercials.

Posted by: Bart at September 11, 2004 6:55 AM

OJ, I'll give you $10 an ounce. Just think how many internet shares you could buy with the proceeds!

Posted by: Robert Duquette at September 11, 2004 11:08 AM

$15. I'll give you $15 an ounce.

Posted by: Robert Duquette at September 12, 2004 1:52 AM